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Target, which has over 2,000 stores across the U.S., has faced pushback from customers after scaling back its diversity, equity and inclusion efforts last year. The changes have sparked boycotts from frustrated shoppers, further threatening the retail chain’s already declining sales. As Target fights to make amends with customers and resolve remaining boycotts, it has encountered an unexpected hurdle.Boycotts first erupted after Target announced in January last year that it was discontinuing its Racial Equity Action and Change (REACH) initiatives, a move that came shortly after President Donald Trump issued an executive order that cut the federal government’s DEI programs.  These initiatives were put into place in 2020 after George Floyd was murdered by a white police officer who assisted in his arrest.Several of Target’s REACH initiatives centered on anti-racism training for workers, advancing the careers of Black employees, supporting Black-owned businesses and increasing sourcing from Black suppliers. The company also exited the Human Rights Campaign survey, which evaluates LGBTQ+ corporate policies and practices, and removed its three-year DEI goals. The move sparked consumer boycotts that lasted for weeks and months. Civil rights activist the Rev. Al Sharpton, who is president of the National Action Network, even criticized the retailer’s decision to cut DEI shortly after Trump took office. “You can’t have an election come and all of a sudden, change your old positions,” said Sharpton in an interview with CNBC in April. “If an election determines your commitment to fairness then fine, you have a right to withdraw from us, but then we have a right to withdraw from you.”Target’s new CEO vows major changes as sales dipAmid boycotts and economic challenges that put pressure on consumer wallets, Target saw comparable sales decline 2.6% year over year in 2025, according to its latest earnings report. Also, Placer.ai data found that foot traffic at Target stores declined between October and December.As it battles weak consumer demand, Target officially replaced Cornell, who had been with the company since 2014, with Michael Fiddelke as CEO on Feb. 1.Related: Target makes drastic workforce shift to fix customer experienceIn a memo sent to employees last month, Fiddelke said that the company has “real work to do” to earn back trust from shoppers, vowing changes such as elevating the guest experience, accelerating technology, improving merchandising authority and investing in employees and communities.“In the weeks ahead, my focus is simple: listen closely, move with clarity and urgency, and lead with purpose,” said Fiddelke in the memo. “We will make clear choices, invest where it matters most and bring this strategy to life through our stores, our digital experiences, and – most importantly – our people.”Target ends a monthslong consumer boycott Under new leadership, Target has scored a major win in its turnaround efforts. At a press conference last week, the Rev. Jamal Bryant, a pastor from Atlanta who launched the Target Fast boycott last year, announced that the boycott has officially ended. Through this boycott, Bryant demanded that Target honor its $2 billion pledge of investing in Black-owned businesses, restore its DEI commitments, establish a pipeline of community centers at 10 HBCUs to teach retail business and deposit $250 million into Black banks.“Black people spend upwards of $12 million dollars a day, and so we would expect some loyalty, some decency and some camaraderie,” said Bryant in an interview with CNN last year.Bryant said during last week’s press conference that he and other Target Fast leaders met with Target last month to discuss the retailer’s commitment to the Black community. He said that while the retailer has not reinstated its DEI program, it has completed 97% of its $2 billion investment in Black-owned businesses, and will finish it by April. It also increased this commitment by providing $100 million in grants and scholarships to Black-led community organizations. More Retail:Home Depot CEO raises alarm bells on consumer problem in storesRoss Stores CEO eyes a change that could drive away shoppersKroger CEO pledges key changes to boost customer loyaltyTarget also informed Target Fast leaders that it has given $10 million to the Pensole Lewis College of Business and Design, $18 million towards the United Negro College Fund and another $8 million toward their Target scholars.Additionally, Bryant said that Target piloted its Belonging program in January, which has been “opening up opportunities for minorities and women.” Now, 13% of Target’s board consists of minorities. Target still has work aheadDespite these gains, Bryant said Target has yet to align with a Black bank. He said that Target Fast leaders have submitted a list of Black banks that Target can partner with and are hopeful that it will make this change, which will help promote Black homeownership and entrepreneurship.“We have not been able to get all that we have desired, but I am grateful for the strides that we have made,” said Bryant during the press conference. “For the Target Fast, that really reflects the faith-based component of this. We are claiming victory, and I believe that our generation needs to see victory.”Neil Saunders, managing director of GlobalData, said in a statement to Forbes that the end of the Target Fast boycott signals that the retailer is heading in the right direction. “The ending of the boycott will come as a relief to Target’s new management team,” said Saunders. “It was an unhelpful distraction and something that was casting a negative halo around the brand.”“Target has shown a willingness to engage and talk to stakeholders, which has helped to bring the matter to a conclusion,” he continued. “Target has also been right to emphasize all the positive things it does in terms of community involvement, donations, and philanthropy – because it actually does a great deal more than many other retailers.”

Target has ended a monthslong boycott as it battles declining sales. Shutterstock

Target still facing another lingering boycottDespite the end of the Target Fast boycott, the founders of the National Target Boycott, which started on Feb.1 in Minneapolis, claim that their movement is still ongoing.The grassroots campaign is urging consumers and institutions to stop shopping at Target until the company reverses its retreat from DEI commitments and addresses demands for corporate accountability.National Target Boycott organizers clarified in a press release sent to TheStreet that while the Target Fast boycott helped bring attention to the issue, it “does not represent the leadership of the national boycott effort.” “Let’s be clear: the Target boycott is not over,” said Nekima Levy Armstrong, one of the boycott’s founders, in the press release. “This is a grassroots movement led by communities demanding corporate accountability, and we will not stop until Target reverses its retreat from diversity, equity, and inclusion.”Target among retailers recently hit by consumer boycottsTarget isn’t the only company that suffered consumer boycotts for scaling back DEI and other business practices. For example, last year, Dollar General faced boycott calls after it cut back its DEI policies shortly after Trump dismantled the federal government’s DEI programs in Janurary.McDonald’s faced boycotts in June and July over its DEI cuts, price increases, alleged anti-union tactics, and alleged exploitation of global supply chains and environmental loopholes.Home Depot was also boycotted by consumers in July due to its decision to quietly remove its DEI page from its website. It later suffered another boycott over its alleged cooperation with ICE’s immigration crackdown, an accusation Home Depot previously denied. Many Americans nationwide are boycotting companies amid heightened political tensions, according to a recent survey from LendingTree.How Americans feel about boycotting companies: About 45% of Americans said they sometimes look into a company’s values and beliefs before making a purchase. Around 31% of Americans have boycotted a business over issues such as perceived discrimination, political contributions, affiliations, or religious messaging and practices. Meanwhile, 37% are more likely to boycott a large corporation, compared to 7% who would target small businesses and 28% would boycott both. Roughly 45% are more inclined to support companies that promote DEI, while 21% say they’re less likely to do so.
Source: LendingTree
Matt Schulz, LendingTree chief consumer finance analyst, in the survey release that many Americans are paying cose attention to companies’ political stances. “There’s no doubt that lots of Americans are aware of the political leanings of many of the businesses they frequent, but the fact that 45% of consumers look into a company’s politics before buying from them is pretty shocking,” said Schulz. He added that companies ignore that reality at their own risk. “Any company that attempts to downplay the importance of politics in their customers’ shopping choices does so at its own peril,” he continued. “Your potential customers are listening closely to what your business says, whether you like it or not.”Related: Ross Stores CEO eyes a change that could drive away shoppers

In a Chapter 11 bankruptcy case, creditors have significant influence over the process. They can’t dictate what the court does, but their voices certainly carry a lot of weight.If creditors think they will be better off with the company remaining a going concern, they may swap debt for equity, offer longer payment terms, or even forgive some debt. When the people and businesses owed money don’t think that continuing operations represent the best path forward, they may push for a breakup, a liquidation, or an auction of assets designed to maximize returns to vendors. In the case of FAT Brands, which owns and operates 18 brands, including Fazoli’s and Round Table Pizza, Twin Peaks, Johnny Rockets, Fatburger, and Marble Slab Creamery, the company’s debtors have pushed the court to auction off the company’s assets, according to a new filing.FAT Brands’ creditors want a sale”One of the Debtors’ main goals for Mediation is to gain alignment on a path forwardfor these Chapter 11 cases. At this time, the Debtors believe that potential going-concern asset sales may be value-maximizing and that the proposed Bidding Procedures are designed to maximize the value the Debtors may receive from any such sale(s),” according to the documents filed in the United States Bankruptcy Court for the Southern District of Texas. The sale will be challenging for a number of reasons.“FAT Brands has a somewhat atypical financing structure, which adds a bit of complexity, but from a big picture standpoint, it’s a typical bankruptcy because the bankruptcy will provide an opportunity for the company to get back on its financial footing,” Jerry Bregman, bankruptcy expert and attorney at BG Law, told Nation’s Restaurant News.He believes that the brands have a future.“There are a lot of shared costs that can be reduced, and there are efficiencies that can be gained from that collection of brands. It’s a positive cash-generating business, however, it’s overleveraged.”In addition, issues remain as to how the sale will proceed, especially as it relates to embattled FAT Brands CEO Andrew Wiederhorn.“Regardless of whether Mr. Andrew Wiederhorn participates in a bid to purchase the assets, Mr. Wiederhorn shall not receive any non-public information regarding any bids other than any Wiederhorn Bids,” the court documents state.The court has established a timeline for the sale process, including an April 3 deadline for interested parties and stalking horse bids, an April 28 auction date, and a May 4 deadline for closing the transaction. 

Fatburger is one of FAT Brands’ key chains.Shutterstock

FAT Brands Chapter 11 bankruptcy so farFAT Brands Inc. filed voluntary Chapter 11 bankruptcy petitions on January 26, 2026 in the U.S. Bankruptcy Court for the Southern District of Texas as part of a restructuring effort aimed at deleveraging its balance sheet and maximizing stakeholder value, according to FAT Brands investor relationsThe company owns a diversified portfolio of restaurant concepts, including Fatburger, Johnny Rockets, Round Table Pizza, Fazoli’s, and Smokey Bones, with more than 2,200 locations worldwide expected to remain open during the Chapter 11 process, the company shared.FAT Brands stated in its filing that the Chapter 11 process will allow it to strengthen its capital structure, support continued brand growth, and support franchise partners and employees while managing through the restructuring, according to documents filed on PacerMonitor.The company’s debt load became unsustainable due to aggressive expansion and acquisitions funded largely by debt, including securitized notes and non‑recourse borrowings that increased financial pressure, according to Restaurant Dive.In court filings, FAT Brands reported limited liquidity with approximately $2.1 million in unrestricted cash, creating challenges in funding operations without restructuring, added Restaurant Dive.A group of creditors, including 352 Capital, sued FAT Brands over its proposed use of securitization cash to fund operations during Chapter 11, contesting the company’s plan to use certain cash flows, according to Restaurant Dive.FAT Brands was delisted from the Nasdaq stock exchange following the bankruptcy filing, with its shares expected to trade on an over‑the‑counter market instead, according to Restaurant Business.FAT Brands CEO fights for controlWiederhorn has held onto control of FAT Brands despite a number of legal challenges, including investigations by the Justice Department and the Securities and Exchange Commission into alleged tax crimes and self-dealing.Now, the financial institutions that kept him in control want him out of the company.”Investors pumped some $1.4 billion in financing into FAT Brands despite his past run-ins with the law. But with his company now mired in Chapter 11, hedge funds, including Brigade Capital Management and Taconic Capital Advisors, want him gone during bankruptcy, saying in court papers that he siphoned at least $200 million of company money to enrich himself and his family,” according to The Wall Street Journal.Wiederhorn has denied wrongdoing and said lenders were aware of his use of company funds when they invested in FAT Brands.The government has dropped its case against Wiederhorn.In the recent filing calling for the sale, the debt-holders made it clear that they want to break up the company to maximize its value.”Accordingly, this Motion seeks approval of a process by which the Debtors canmarket and sell all, substantially all, or any portion of their assets or brands. And for the reasons more fully set forth herein, the Debtors submit that the proposed Bidding Procedures, among other things, comply with applicable law, provide good andsufficient notice to all parties in interest, and facilitate the Debtors’ ability to accept the highest (or otherwise best) offers for the Assets,” according to the filing.Nothing in the court documents, however, precludes a bidder from buying the entire company.Related: 159-year-old whiskey brand files disputed Chapter 11 bankruptcy

For most people, interacting with AI still means typing into a box and reading a response. It is functional. It works. But it is also a long way from how humans naturally communicate with each other.A growing number of companies are betting that the next phase of AI is not just about smarter models. It is about more human interfaces, specifically digital humans: real-time, conversational avatars that speak, respond, and adapt in ways that feel closer to a real interaction.The idea is straightforward. If AI is going to be embedded into everyday business workflows, it needs to feel less like software and more like conversation.AI market moving fastThe numbers reflect a shift that is already underway. The digital human market is projected to grow from $6.28 billion in 2025 to more than $26 billion by 2031, a compound annual growth rate of nearly 27%, per Mordor Intelligence.That growth is being driven by enterprises, not consumers. Companies are looking for ways to scale communication, training, and support without proportionally scaling headcount.Digital humans offer a model that runs around the clock, works across languages, and does not require a human on the other end of every interaction.More AI Stocks:Morgan Stanley sets jaw-dropping Micron price target after eventBank of America updates Palantir stock forecast after private meetingMorgan Stanley drops eye-popping Broadcom price targetMajor technology companies have taken notice. NVIDIA has built out its Avatar Cloud Engine, a suite of tools that allows developers and enterprises to create interactive AI-powered digital humans. Meta’s Reality Labs has continued investing in lifelike avatar and immersive interface research as part of the company’s broader AI push.From one-way video to live conversationOne of the most significant shifts in this space is the move from pre-recorded AI video to real-time, two-way interaction. Earlier generations of AI avatars were largely used to produce scripted content for training modules or marketing materials. Useful, but limited in how users could actually engage with them.That is changing as the underlying technology matures. D-ID, an enterprise AI avatar company, this week launched V4 Expressive Visual Agents, its latest generation of digital humans built for real-time, LLM-connected conversations. Gil Perry, co-founder and CEO of D-ID, explained how the practical reality for businesses has shifted.”A year ago, businesses were largely using AI video as a standard format for content production, creating pre-rendered clips for training, marketing, or communication. It was powerful, but fundamentally one-directional,” Perry told TheStreet.”With V4, we’re moving into real-time, interactive experiences. This is no longer early-stage experimentation. The quality of interaction has reached a level where conversations feel authentic enough for real-world, high-frequency use cases. V4 has taken the real-time visual agent technology to a state that is mature enough for wide usage. What’s changed is that these are no longer pilot projects – companies are moving into production-scale deployments.”That transition from static to interactive is significant. It turns digital humans from content tools into live communication platforms, capable of handling queries, adapting responses, and sustaining multi-turn conversations at scale.Why businesses are moving nowThe question of timing matters. Digital human technology has existed in various forms for years. What has changed is that the ROI case has become easier to make.

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“First, clear ROI use cases have emerged – especially in corporate learning, training, onboarding, and internal communications. These are areas where companies need to deliver consistent, scalable, and engaging experiences across large, distributed workforces. Second, there’s a shift toward more engaging interfaces for AI. Text-based systems are powerful but often underutilized. Digital humans provide a more natural way to interact with AI, which increases adoption. Third, enterprises are under pressure to scale expertise and communication without scaling headcount. Digital humans can deliver knowledge consistently, 24/7, across languages and regions,” Perry said.Where enterprises are deploying digital humans most activelyCorporate learning and development: Consistent, scalable training delivered to distributed workforces without scheduling constraintsHR onboarding: New employees get the same quality of information regardless of location or time zoneCustomer support: AI agents that handle high-frequency queries without escalating every interaction to a humanPre-sales and product education: Prospects engage with an interactive AI that explains complex products naturallyThe trust barrier is real but solvableUser skepticism around AI avatars remains a genuine challenge, particularly when an interaction feels close to human but not quite right.Companies in this space have recognized that higher visual fidelity alone does not solve the problem. Trust tends to come from consistency, transparency about what users are interacting with, and whether the system reliably delivers value. If a digital human helps someone get what they need quickly, the skepticism tends to fade.What comes nextDigital humans are unlikely to replace text-based AI for every use case. Typing a quick prompt will remain the fastest path to a lot of information.But as AI moves deeper into business operations, the demand for more natural interfaces is growing. Deloitte’s 2026 report found that worker access to AI rose 50% in 2025, and the number of companies with significant AI projects in production is expected to double within months. That scale creates pressure to make AI easier to use, not just more capable.Digital humans sit squarely in that space. They offer a way to make AI feel less abstract and more accessible, especially where communication and engagement matter most.The future of AI may not just be about what it can do. It may be about how it shows up.Related: Snowflake earnings beat as Goldman Sachs sees AI upside